Is KO A Value Stock?

On my drive down to New York last night, I listened to Mad Money on the radio. Cramer had a segment where he described KO as a "value" stock.  Now he must speak a different language than every other value investor I have ever listened to, because he never once spoke about valuation in why KO was a value stock.  Instead he focus on predictability of earnings, management of cash, expense management, opportunities in emerging markets and opportunistic investments.

In my mind, those items make KO a "blue chip" stock, but not a value stock. Perhaps they are a value stock compared to some of the momentum plays Cramer discusses, but at 20x trailing earnings! I struggle placing KO in the value bucket.

The more interesting segment was on SD. This is a stock I owned for a stretch last year, but then bailed on them. That was a mistake on my part as they have moved up over 20% since I sold. Cramers thesis is that they are still hated by analysts and over time, the new management team will get credibility and some of the many hold and sell positions will be raised. There is a perverse logic in that approach. If I did not already have a large position in oil and gas with BBEP, I would likely take another hard look at SD.  However, readers will recall that my longer term outlook on oil is negative, so it really is not a sector I want more exposure.